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Project delays and claims of fraud lead to contract disputes

| Aug 28, 2019 | Contract Disputes |

When a company in Florida or elsewhere hires another party to develop and install software upgrades, it typically expects the project to be completed by the agreed-upon date. Any delays in project completion could prove costly for all parties involved and incidents of this nature continue to be one of the leading causes of contract disputes. American Crystal Sugar Co. has reportedly filed a lawsuit against a software company accusing it of failing to uphold the terms of a business agreement and fraud.

The incident reportedly began when American Crystal decided to hire software company Biwer and Associates to install upgrades to outdated systems. American Crystal asserts that it has spent nearly $750,000 obtaining a license and purchasing items the other party claimed would be necessary for the project. However, the company claims it eventually came to believe that Biwer had misrepresented its capabilities and that it would be unable to complete the project.

American Crystal asserts that the incident has caused it to suffer substantial financial loss and has since filed a lawsuit against the software company, accusing it of fraud. However, representatives from Biwer reportedly deny any wrongdoing and dispute the allegations against the company. Biwer claims that this is the first time in the history of the company that it has been accused of being incapable of meeting the terms of a contract.

The outcome of contract disputes can have a substantial impact on each party involved. Upon encountering such conflict, a person in Florida could benefit from consulting with an attorney for guidance in understanding each of his or her available options and advice in making informed decisions. An attorney can examine the situation thoroughly and work with a client in forming a strategy to protect his or her business interests.